Can we 'return to the village' way of life?

Is there a series of changes that could lead to the development of living patterns which provide the sense of community and sustaniability similar to that of a healthy village...if such a thing ever really existed.

 I ask not in an anti urban sense, but in this sense: What percent of all physical needs of the community can be provided 'locally' or 'regionally'...and at what cost? What might be the conditions for a 'village' to provide most of its foods, energy, services, etc. ? Can there be an intensification of localism? What would the costs and benefits be? 

Practical test: Would/could this approach revitalize small towns in US mid-west? Or..Berlin, NH, or? Would it lower the world's total energy requirements by eliminating long distance product logistics costs?